What right does COBRA provide to workers whose employment has been terminated?

COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act, provides individuals who have been terminated from their employment the right to continue their group health insurance benefits for a limited period. This is significant because, upon losing a job, individuals often face a sudden gap in health coverage, which can lead to financial difficulties and health risks due to the inability to afford necessary medical care.

Under COBRA, eligible employees can maintain their existing health insurance plan, although they may have to pay the full premium themselves, which can be higher than what they paid while employed. The important aspect of this law is that it allows former employees and their families to keep their health benefits for up to 18 months following the termination of employment, and in some cases even longer for certain qualifying events, such as disability.

This provision ensures that individuals do not have to face a significant lapse in healthcare coverage during a transitional period, allowing them to seek new employment or address their healthcare needs without the burden of being uninsured.